Tuesday, July 20, 2010

What Stocks To Invest In Now

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Once you have a handle on the whether it's the right time to invest, the next step it to look at what stocks to invest in now. Lately, the market hasn't been provided a lot of opportunities and it's my opinion that the big money is still sitting on the sidelines. The latest confirmed rally wasn't followed by a huge amount of volume. This makes it difficult to find good buying options. Finding stocks to invest in that will potentially gain 20-25% requires institutional sponsorship to drive up the price. The best stocks to invest in in each new bull market are the ones that break out on the follow through day that confirms it.

What I would do if you are looking for ideas is keep an eye on page one of the IBD. In particular, watch the stocks that appear in the story and in the Big Picture column. These are stocks that they have concluded are the market leaders. Until you learn to spot leadership, look here to know which stocks are the leaders. Once you have a better eye for stocks, you'll discover that you can pinpoint leadership.

Another place to find stocks that would be good to invest in now are in the top six sectors leading the market. These are listed at the top of each sector in the stock tables. The stock tables are arranged in order of leadership.

Once you have identified stocks that the paper considers leaders, use the stock checkup feature to see what other stocks are in the same industry group. Remember stock market investing works in trends and those stocks that go up are usually grouped together. Try your best to be in the best stock in the group.

Whatever stock you choose to invest in at this time, make sure that you don't buy when it is overextended or more than 5% above the pivot point.

Good luck!

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